Medicaid Managed Care in Texas

Most of the Texas Medicaid program is operating through Medicaid managed Care, which has been expanded, beginning in 2011, to cover nearly 94 percent of enrollees. Savings and improved outcomes have been reported as a result of this expansion in Texas, one of the first states in the US to pursue managed care in Medicaid. Texas Medicaid Overview The Medicaid program, created in 1965 as part of President Lyndon Johnson’s Great Society, is jointly funded by the state and the federal government according to the federal medical assistance percentage (FMAP). Texas has a larger match than many states (58.19 percent federally funded in 2019), as the FMAP is based on per capita income in the state, which is relatively low. Medicaid is administered by the Texas Health and Human Services Commission (HHSC). The Texas 2018-19 state budget appropriated $62.4 billion to Medicaid, $2 billion less than the previous biennial budgeted amount. The program is regularly underfunded, requiring sup